Crypto market overview for 2023: will the crypto market survive?
The crypto market has been experiencing a major decline and increase in its market capital (mcap) for the better part of 3 years now, due to inflation in the global market and the sudden rise and fall of most countries' market value. Many investors have pulled out of the crypto market due to its unpredictable nature and concerns over taking a big L. Awareness of the earth and laws implemented to oversee this has also landed some crypto with a much in the guts.
Crypto Market Overview For 2023
2023 has been a difficult year for cryptocurrency investors, going from bad to unbelievably worse in June as the board market rotation out of risk assets continued, plunging Bitcoin (BTC), Ethereum (ETH), and other coins deeper into the crypto drought.
Rising interest rates and fears about the U.S. economy have triggered sell-offs in Growth stocks, Technology stocks, Crypto, and other risk assets in 2022. Investors are concerned that the Federal Reserve will be unable to avoid a U.S. recession, as it tightens monetary policy to combat persistently high inflation.
In June, the Federal Open Market Committee (FOMC) raised its target fed funds interest rate range by 75 basis points (bps), its largest rate hike in 28 years. Fed Chair Jerome Powell, subsequently suggested that another 50 to 75 basis point hike is on the table in July.
The crypto market was dealt a blow in the last week of September when the SEC delayed a decision on several bitcoin spot ETF proposals until January 2024. The delayed ETF proposals include applications from Arkk Invest, Global X, Black Rock, Valkyrie, and Bitwise. The SEC (Securities and Exchange Commissions) previously delayed ruling on Bitcoin ETFs in August as well.
2023 Crypto Performance
Bitcoin (BTC)
Bitcoin price traded a little higher in September of 2023, in a range between 25,000 dollars and 27,000 dollars, before finishing the don't h at 27,155 dollars, which is a 5.1% monthly increase.
Ethereum (ETH)
Ethereum price rose more than 3.0% in September to close out the month at 1,684 dollars as the network prepares to transition from a proof of work consensus to a more energy-friendly proof of stake model later this year.
ETH is now down by 50% to date, while BTC is down 60% over the same period.
Solana (SOL)
Solana was the best September performer of 2023, with an n 18.9% gain.
Dogecoin (DOGE)
Dogecoin was the worst performer of the bunch with a 1.5% loss.
Other Coins.
Popular altcoin Avalanche(AVAX), Polkadot(DOT), and Binance coin(BNB) were all down by more than 28%, month over month in June.
The total market capitalization of the global cryptocurrency market peaked at around $3 trillion. It however hovers around $1.25 trillion today, with roughly $1.25 trillion wiped out.
The Crypto Market Is Falling.
Crypto winter has forced several companies to freeze hiring or lay off workers.
- On June 2, Gemini said it was cutting about 10% of its workforce.
- On June 11,crypto.com announced that it was reducing its staff by 5%
- On June 14, BlockFi disclosed a 20% reduction in its workforce.
More than 26,000 people were laid off in the crypto sector this year, with Binance and Kraken alone laying off over 2,100 people combined.
Crypto exchange Binance has laid off over 1,000 people globally in recent weeks amid its ongoing legal investigation from the U.S. Securities and Exchange Commission (SEC) and other regulatory challenges, a source told the Wall Street Journal.
Conclusion
"We've seen banks and dealers over here in good times and cut staff or investment too deeply in bad times," Neal says.
Layoffs do not signal the end of, but simply a downturn that is healthy for the long term. Overall, despite the sharp pullback in BTC spot price, the mining model remains highly profitable for most of the leading miners.